Part 17Partnerships

Introduction

1256Overview of Part

1

This Part contains some special rules about partnerships.

2

For restrictions that in some circumstances affect relief for losses, and certain other reliefs, for a company that is a member of a partnership see section 116 of ICTA (arrangements for transferring relief).

1257General provisions

1

In this Act persons carrying on a trade in partnership are referred to collectively as a “firm”.

2

This section and sections 1259 to 1266 are expressed to apply to trades, but unless otherwise indicated (whether expressly or by implication) also apply to businesses that are not trades.

3

In those sections as applied by subsection (2)—

a

references to a trade are references to a business, and

b

references to the profits of a trade are references to the income arising from a business.

1258Assessment of firms

Unless otherwise indicated (whether expressly or by implication), a firm is not to be regarded for corporation tax purposes as an entity separate and distinct from the partners.